Glossary

1933 Securities Act

The original federal legislation that regulated the trading of primary securities.

1934 Securities Exchange Act

An act that created the U.S. Securities and Exchange Commission and regulated the trading of securities in secondary markets.

accounting exposure

See translation exposure.

accounting identity

The basic accounting definition wherein assets always equal liabilities plus owners’ equity.

accounts payable cycle

The average time it takes to pay suppliers after delivery.

accounts receivable cycle

The average time it takes to collect from credit customers.

accrual-based accounting

A process in which revenues or costs are recognized and recorded at the time of sale regardless of whether revenues have been received ...

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